Morning Commentary: Investment-grade bonds mixed; Coca-Cola eases; Libor yield stable

By Cristal Cody

Eureka Springs, Ark., Aug. 31 – Investment-grade corporate bonds were mixed in early secondary trading on Wednesday as market activity thins in front of the release of August employment data on Friday and the long holiday weekend.

Coca-Cola Co.’s notes (Aa3/AA-/A+) that priced on Monday traded about 1 basis point to 2 bps softer in the secondary market.

The three-month Libor yield was steady over the morning at 83 bps.

On Tuesday, $15.4 billion of investment-grade bonds traded, up from $14.5 billion on Monday, according to Trace.

Coca-Cola softens

Coca-Cola’s 1.55% notes due 2021 were quoted wider at 42 bps offered in the secondary market, a source said.

The company sold $1 billion of the five-year notes on Monday at a spread of 40 bps over Treasuries.

Coca-Cola’s 2.25% notes due 2026 eased to 71 bps offered.

The 10-year notes were sold in a $1 billion tranche on Monday at a spread of 70 bps over Treasuries.

Coca-Cola is an Atlanta-based beverage company.

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